Virtual Marketplaces

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Virtual marketplaces allow buyers to access the suppliers' facilities remotely through technologies such as Augmented Reality (AR) and graph databases
• Impact: Reshaping procurement by introducing a digital experience, enhancing decision-making efficiency, and fostering a more integrated and transparent supply chain ecosystem with multiple tiers

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Ease Complexity: Through the deployment of virtual marketplaces and VR, companies can create digital interactive environments with their suppliers
• Sustainability Concerns: Following an increasing awareness of sustainability, businesses seek ways to reduce their carbon footprint
• Technological Innovation and Accessibility: Rapid development and accessibility of AR and VR make the creation and adoption of virtual marketplaces more feasible and cost-effective for businesses of all sizes 

Use Cases 

How to apply this trend? 

• Virtual Procurement Collaboration: Facilitate flexible and more effective supplier meetings
  Example: Hololight’s software application for enhanced supplier meetings and decision-making. Importing 3D CAD data directly, procurement teams collaborate in XR environments, merging real product parts with virtual models, to allow detailed reviews and efficient collaboration
• Virtual Reality in Showcasing: Enriching decision basis in procurement
  Example: IKEA has pioneered the use of virtual reality in showcasing their products. In the future, the concept can be transferred to supplier showcasing at production facilities or meetings in order to improve decision-making for procurement departments

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Testing the Ground: To test a potential deployment in the long term, procurement teams can try integrating virtual marketplace technologies into their ERP and SCM systems to assess the impact on decision-making and virtual collaboration
• Redefining Supplier Relationship Management for a virtual world: Procurement needs to establish new protocols for audits, negotiations, and quality checks